In the hinterland of the Ordos Basin, next to the gas production station of Changqing Oilfield, rows of photovoltaic panels are converting sunlight into electricity, driving the operation of natural gas processing equipment. This integration scenario of "natural gas+new energy" is becoming a microcosm of China's energy transformation. However, in the "last mile" of integration, issues such as missing standards, high costs, and inadequate mechanisms remain prominent.

On March 6, 2026, at the Great Hall of the People in Beijing, Nie Xiaowei, a National People's Congress representative and Party Secretary of Jianghan Petroleum Management Bureau Co., Ltd., presented a systematic proposal on promoting the integrated development of natural gas and new energy. He pointed out that natural gas, as a clean and low-carbon fossil energy, has dual strategic values of "transformation support" and "security guarantee" in the construction of new energy systems, and it is urgent to release its integration potential through systematic policy support.

Cracking the Terminal Carbon Reduction Challenge

Natural gas pipelines are like highways, and if hydrogen energy can take this train, it can enter thousands of households at low cost and high efficiency, "Nie Xiaowei metaphorically said. He suggested promoting the coordinated development of the natural gas and hydrogen energy industries, establishing a sound standard system and safety supervision measures.

Specifically, he called for clarifying the upper limit of the hydrogen blending ratio of natural gas while ensuring safety, and introducing design specifications for hydrogen blending gas pipeline engineering. At the same time, establish a national level hydrogen blending pipeline safety database, strengthen safety risk assessment, and develop a graded warning mechanism.

In terms of pricing mechanism, Nie Xiaowei suggested improving the price formation mechanism for natural gas blended with hydrogen, combining with the development process of the green hydrogen industry, timely introducing a green hydrogen quota mechanism for natural gas blended with hydrogen, and orderly promoting the green and low-carbon transformation of terminal areas such as urban combustion that are difficult to reduce carbon emissions. In the early stages of the development of the green hydrogen industry, a certain proportion of value-added tax (VAT) will be levied and refunded for hydrogen blended natural gas projects to reduce terminal energy costs.

Building a modern biogas system

Bionatural gas can not only treat agricultural waste, but also replace fossil fuels, making it a true circular economy. "Nie Xiaowei set his sights on the agricultural sector. He suggested improving the modern bio natural gas industry system, strengthening top-level design, and establishing a comprehensive cross departmental coordination mechanism.

He proposed to establish a national special fund to support key technologies such as low-cost and efficient fermentation, and to create a national level demonstration project for biogas, forming a replicable and promotable business model. At the same time, promote the substitution of bio natural gas in industrial raw materials, transportation fuels, urban gas, and power generation fuels.

In terms of the carbon market, Nie Xiaowei suggested establishing and improving the methodology of National Certified Voluntary Emission Reduction (CCER) for biogas, and creating a national level biogas monitoring platform. He also encourages the pilot of the integrated development model of "bio natural gas+modern agriculture" to promote circular development.

Establish a capacity pricing mechanism

Gas and electricity have fast peak shaving and flexible start stop capabilities, making them the 'best partners' for new energy consumption. However, the current electricity pricing mechanism is difficult to reflect their regulatory value. Nie Xiaowei pointed out that gas and electricity play an important regulatory role in the new power system, but lack a reasonable return mechanism.

He suggested accelerating the improvement of the gas electricity capacity pricing mechanism, referring to the coal electricity capacity pricing standards, and promoting relevant provinces to further clarify the gas electricity capacity pricing mechanism, reflecting its higher regulatory value. Specifically, establish a dual track electricity pricing system of "capacity+electricity", with capacity pricing ensuring fixed cost recovery and electricity pricing reflecting real-time market value.

In addition, he suggested piloting the "Gas Electricity Peak Adjustment Auxiliary Service Market" in high penetration areas of new energy such as the northwest, allowing gas and electricity to participate in bidding for auxiliary services such as frequency regulation and backup, providing strong support for large-scale integration of new energy.

Nie Xiaowei believes that through the above measures, the shackles of industrial development will be effectively broken, the transformation and upgrading of energy production and supply structure will be promoted, and the green, low-carbon, and high-quality development of the economy and society will be assisted.Editor/Yang Meiling